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WVBK Homebuyers Guide - Andrew Fullmer

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At Willamee Valley Bank our mission is to be the BEST mogagebank in the WORLD by transforming the experience and expectationof home nancing. Our CULTURE is built on core slogans that each team member at WVBK lives and embodies eve day.In residential lending there should be ceain things which are just standard, we like to call these the “Givens”. Some lenders talk about great service, competitive pricing, or their programs like they are special. Here at Willamee Valley Bank we feel those things should be a GIVEN.Dan King - EVP, Residential LendingLeave NO LOAN BehindWE Do It FOR THE BorrowersAn unswayed focus on the BORROWERS.Obsessing over our Customers, not our competitors.YOUR LocalHOME LOAN LENDER3

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EXPERIENCEDelivering an extraordina client and borrower experience through quicker loan close times and the culture that is WVBK.PROGRAMSBeing a self-funding lender allows us to oer a variety of products for you, including manual underwriting and loan programs down to 600 credit score to those who qualify.RATESWe’re ve cognizant of the impoance of competitive rates, which is why we monitor and analyze our rate position daily.COMMUNICATIONWith milestone updates through the loan process, we help you spend less time woring about the status of your loan and more time preparing for your new home.AVAILABILITYWe’re here for you eve step of the way. Give us a call, text, email, or stop by your local branch. We’re here to help make this process feel as smooth as possible.The Givens4

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# 1Community BankIN THE NATIONSINCE 2019No. 1 on the list of 200 top performing publicly traded bankswith less than $2 billion of assets by American Banker Magazine.5

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LESS THAN 5%*Low down payment programs can be more expensive because they may require mogage insurance or a higher interest rate. Look closely at your total fees, interest rate, and monthly payment when comparing options.Ask about loan programs such as:• Conventional & FHA loans that may oer low down payment options.• VA, which oers a zero down payment option for qualifying borrowers.• USDA, which oers a similar zero down payment program for eligible borrowers in rural areas.5%-19%*You may have to pay higher interest rates or fees. Lenders require private mogage insurance (PMI). PMI is an insurance policy that allows you to make a lower down payment by insuring the lender against loss if you fail to pay your mogage.20%+*A higher down payment likely provides the lowest rates and most options. However, think twice if the down payment drains all your savings because a lower rate doesn’t necessarily mean it’s the right loan for you. CHOOSE THE RIGHTDOWN PAYMENT FOR YOU*Terms of repayment and annual percentage rates va based on individuals credit criteria. Percentage provided as general information for program. 6

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HOME LOAN PROGRAMDOWN PAYMENT REQUIREMENTSCONVENTIONALFHAJUMBOVAUSDA/RURAL3-5%* DOWN3.5-5%* DOWN10-20%* DOWN0%* DOWN0%* DOWNLOANPROGRAMMINIMUMDOWN PAYMENT*Terms of repayment and annual percentage rates va based on individuals credit criteria. Percentage provided as general information for program. 7

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First Time Homebuyers2% Annual Percentage Yield ‡Account available to eligible residents of Oregon and Idaho. *For more information and detailed requirements, borrowers in Oregon visit /rst-homebuyers.aspx, borrowers in Idaho visit hps:// Borrowers should consult their own tax advisors to determine if they are eligible for tax deductions. †hps:// accurate as of 2/2/2022. ‡Interest earned available for First Time Home Buyer Savings Accounts. Annual Percentage Yield (APY) is current as of 4/27/2022. Interest is paid monthly. Account required minimum deposit of $100. Fees may reduce earnings. Ask an employee about applicable fees and terms.Opening a savings account withWILLAMETTE VALLEY BANKTo purchase your first homeMay help reduce your taxes*& help you earn up to 33x thenational average† on your savings!8

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Stay current on existing accounts.Call your mogage professional with anyquestions or concerns about your credit.Maintain your current employment.Be prepared for full nancial disclosure.Talk with your Willamee Valley Bank loanocer before making large deposits intoyour bank account.Don’t apply for new credit.Don’t close existing accounts.Don’t max out credit cards.Don’t make major purchases includingfurniture or vehicles.Don’t consolidate your debt.Don’t pay o collections or “charge-os.”Don’t become self-employed or 1099.Don’t omit liabilities from your application.Do These ThingsDon't Do These Things9

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CONVENTIONALPurchase loans which meet Fannie Mae and/or Freddie Mac guidelines and typically require minimum of 3-5%* down.FHA (Federal Housing Administration) Purchase loans which require a minimum of 3.5%* down.USDA (United States Depament of Agriculture)USDA Loans oer a 0%* down payment option for any buyer who is under the household income cap and is willing to live in USDA/rural areas. A home mogage program that does not require a down payment if you are purchasing in an eligible rural area.VA (Veterans Aairs)These loans are available to active duty, retirees, veterans or surviving spouses of the U.S. Milita who meet program restrictions.JUMBOA loan is considered “jumbo” if the amount of the mogage exceeds loan-servicing limits set by Fannie Mae and Freddie Mac — 2022 limits are $647,200 for a single-family home in all states (except Hawaii and Alaska and a few federally designated high-cost markets, where the limit is $970,800).CONSTRUCTIONContact a WVBK loan ocer to see if you qualify for construction nancing.REFINANCEReplacing an existing loan with another under dierent terms to take advantage of a beer interest rate, lower monthly payments, or to take out cash. HOME LOAN PROGRAMS*Terms of repayment and annual percentage rates va based on individuals credit criteria. Percentage provided as general information for program. 10

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HOME$TART PROGRAMQualied borrowers who meet the income restrictions could receive up to $7,500 in grant funds for down payment or closing costs. Program is rst-come, rst-served while funds are available.NAHIThe Native American Homeownership Initiative is a down payment and closing cost assistance program oered to qualifying Native American, Native Alaskan and Native Hawaiian homebuyers who meet the income restrictions and who complete a homebuyer education course. Qualifying NAHI paicipants may receive up to $15,000 in grant funds. Program is rst-come, rst-served while funds are available. IDAHO HOUSINGIdaho Housing oers down payment and closing cost assistance to homebuyers who meet qualications, reducing the amount of cash they’ll need up front to purchase a home. Homebuyers must complete a homebuyer education course and meet program income restrictions.WASHINGTON BONDBorrowers that meet the income restrictions and complete a homebuyer education course may be eligible to receive a percentage of the mogage loan amount to use toward down payment through the Home Advantage loan OR the Conventional HFA Preferred loan. DOWN PAYMENT PROGRAMS11

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Mortgage RatesWHAT ARE THEY TODAY?NOW MAY BE THE RIGHTTIME TO BUY OR REFIBuying a home is a huge step in your life. Doing a mogage checkup at the right time is equally as impoant. Peorming a regular mogage checkup is an impoant step to achieving your nancial goals.Is it time for a Mortgage Checkup?It depends on your loan type and goals. Do you want to:• Consolidate debt?• Eliminate mogage insurance?• Remodel your kitchen?• Reduce your mogage payment?• Reduce your loan term?• Take cash outWe suggest peorming a mogage checkup one year aer your loan closes, and eve 6-12 months aer that.12

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���������Mortgage InterestMortgage PointsLocal Property TaxHome OfficeMoving ExpensesEnergy-Efficient CreditAdjusted BasisMedical ImprovementsHome Rental*This adveisement does not constitute tax advice. Borrowers should consult their own tax advisors.PossibleHOMEOWNERSHIPTax Deductions*13

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Since 2014, WVBK has secured over $1,500,000 in down payment assistance* for our borrowers with up to $7,500 each in Grant Funds to use toward closing costs or the down payment on their home.Native American, Native Alaskan,& Native Hawaiian borrowers could receive Grant Funds to use toward closing costsor down payment up to $15,000†HOME$TART GRANTNAHINATIVE AMERICAN HOMEOWNERSHIP INITIATIVE *Amount accurate as of 1/4/2022 †For qualifying Native American, Native Alaskan and Native Hawaiian borrowers who meet the income restrictions and who complete a homebuyer education course. Program is rst come, rst served while funds are available.14

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PITIThe components that make up your monthly mogage payment: principal, interest, taxes, mogage insurance, homeowner’s insurance, and HOA.PRINCIPALThe amount of the loan that has not been paid back to the lender.INTERESTA fee charged for borrowing money, typically paid in monthly installments.PROPERTY TAXA tax charged by local government and used to fund municipal services.MORTGAGE INSURANCEProtects lenders against some or most of the losses that occur when a borrower defaults on a mogage loan.HOMEOWNER’S INSURANCECombines protection against damage to a dwelling and its contents including re, storms, or other damages with protection against claims of negligence or inappropriate action that results in someone’s inju or propey damage.ESCROWAn account established by a third pay to act as intermedia for the buyer and seller. This can also refer to the impound account for monthly collection of taxes and insurance aer the loan closes.LTVLoan to Value: ratio of loan amount to value of home.DTIDebt to Income: ratio of monthly income to monthly debt in percent (%).USEFUL TERMS & DEFINITIONS15

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PAYMENT HISTORY = 35%In the calculation of your FICO credit score, no factor is more impoant than your payment histo. That histo is comprised of many complex components, but ultimately, expes say, it’s prey simple: pay your bills on time, eve time.TOTAL DEBT = 30%If you want to earn a good score, you’ll need to pay aention to your amounts owed–the second most impoant factor used to calculate a borrower’s FICO score.YEARS OF CREDIT HISTORY = 15%It may not be the most impoant factor, but if you don’t have a long credit histo, you can probably forget ever having a peect score. Plus, without at least some length of credit histo, you won’t have a score at all.NEW CREDIT = 10%Taking on too much new credit too quickly can hu your FICO credit score. However, adding ‘new credit’ to an old, troubled account may actually help your score. Confused? Welcome to the complex world of the FICO credit score.TYPES OF CREDIT = 10%Want good credit? Responsible use of a single loan can get you there. But if you want a top credit score–the kind that gets you the best rates, the highest limits and the sweetest deals–you’re going to have to mix it up a bit.CREDIT SCORE GAUGE<600Needs Work600-680Average680-740Good740+ExcellentTHE FIVE COMPONENTS OF YOURFICO SCORE16

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Vs.*Borrowers should consult their own tax advisors to see if they are eligible for tax deductions.OWNImprovements Benet YouRather Than The LandlordPotential For HomeTo Rise In ValuePaint The Walls AnyColor You Want! Get The Pet You’veAlways Wanted!Possible Tax Write-os& Advantages*RENTYour Landlord GetsAll Potential Tax BreaksNo Home Equity Gained &Possible Rent IncreasesLimited AbilityTo Customize HomePet Limitations &Extra Costs No Tax AdvantageTo Renting17

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SELF-FUNDINGVS WAREHOUSE LINESWillamette Valley BankUnderwriters go o of AUS ndings.Other LendersUnderwriters may ask forAdditional conditions not on AUS.AUS FindingsHow we useAUTOMATED UNDERWRITINGSOFTWARE (AUS)CLEAR TOCLOSECLOSINGDISCLOSUREDOCS FUNDINGCLEAR TOCLOSECLOSINGDISCLOSUREPRE-DOC QCWait for 3rd payPRE-FUND QCWait for 3rd payDOCS FUNDINGWillamette Valley BankSelf-funds loansMortgage Bank / CompanyUses warehouse lines18

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Get pre-qualiedDiscuss loan options that suit youNegotiate purchaseComplete application& provide documentsMoves into le processTitle work • appraisal • processingUnderwritingConditionsCleared for closingSchedule close with all paiesCelebrate! You own a home!Start2345678910CloseBEHIND THE SCENESThe process ofCLOSING YOUR HOME LOAN19

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States with Local WVBK OcesOur fastest close times in 202123DAYS TOCLOSE23DAYS TOCLOSE16DAYS TOCLOSE22DAYS TOCLOSE21

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Readyto begin your Home LoanJourney?www.LetsTalkHomeLoans.comGet Pre-Qualified Today22

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WWW.WILLAMETTEVALLEYBANK.COMSubject to qualifying credit approval. Willamee Valley Bank is not acting on behalf of or at the direction of FHA, VA, HUD, or the Federal government.   